In the Domain of Ethical Behaviour,obedience Is To

question 80

Multiple Choice

In the domain of ethical behaviour,obedience is to:

• A) enforceable norms and standards
• B) oneself
• C) laws prescribed by the legal system
• D) unenforceable norms and standards
• E) the organisation.

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Definitions:

Reinvestment Rate Risk

Occurs when a short-term debt security must be “rolled over.” If interest rates have fallen, the reinvestment of principal will be at a lower rate, with correspondingly lower interest payments and ending value.

High-Coupon Bonds

Bonds that offer a higher-than-average interest rate (coupon) compared to others in the market, reflecting potentially higher risk.

Low-Coupon Bonds

Low-Coupon Bonds are bonds that have a lower interest rate than the prevailing market interest rate, typically making them sell at a discount to their face value.

Yield To Maturity

The total return anticipated on a bond if the bond is held until the end of its lifetime.